I had the pleasure of sitting with Archie Gemmil last Saturday for lunch and to watch Derby County. The lunch was very palatable but the football less so!
As I arrived at the table Archie quipped "Now we can find out about the property game." This made me think now that the dust has settled after Beijing there is still one more medal ceremony to be performed.
The medals for ruining the UK property market. So in reverse order here we go.
Bronze – The Banks & Building Societies.
In the rush to lend money the loan to income levels were stretched. The percentage of loan to value was excessive in some cases 115% of the purchase price was lent.
Whoops. The purchasers had nothing to lose and once values fell, doom and gloom ensued with cries of negative equity and repossession.
Banks and Building Societies are still lending money but at more reasonable levels. Deposits of 10% plus are being requested in the majority of cases.
The public are now realising that it is prudent to save money for that deposit and in many cases parents are providing the deposits when asked.
The property market needs a sensible consistent lending policy by the Banks to prevent the feast and famine approach to money lending.
Silver – The media, radio, TV and newspapers what a bunch. This medal is awarded for a real team effort.
Over the years think of all the TV programmes about how to make money out of property.
How to do up your house
Garden makeover
Lawrence Llewellyn Bloody Bowen
Not to mention the money made out of advertising relating to the property market.
I have no objection to national reporting of factual information. However, the media landslide on property pricing has been deplorable.
Some reporter who last week wrote a fashion article or reported on a celebrity wedding suddenly became a property expert based on a conversation at a dinner party in Fulham.
The property market in London is not the same as in Derby and yet reports every day talked about "the property market".
The percentage drops in prices are nowhere near as high as reported i.e. 20-30% yet the fear and despondency created by this irresponsible reporting has undoubtedly had a profound effect on the property market across the country.
So well done boys and girls of the media for this sterling effort. As we all know the market is cyclical so next time there is a downturn perhaps you could go for gold.
Gold – There is only one winner, it wasn't even close. By a clear margin, the Government.
A failing economy, which lets not forget, can only be blamed on the recent chancellors in the form of Gordon Brown and now Alistair Darling. Failure to provide a stable background for a satisfactory lending policy.
Introducing poor legislation in the form of Home Information Packs. Totally useless and a waste of public money, let alone a wasteful paper chase. Well done Mrs Balls and Mrs Flint.
To make sure of the gold, the recent dithering over Stamp Duty has caused an overwhelming 83% of home movers either pushing back their moving date or postponing their move indefinitely (figures from Moveme).
So with Gordon and Alistair on the top of the podium lets all stand for the national anthem.
